{"id":3551,"date":"2019-05-29T09:21:51","date_gmt":"2019-05-28T23:21:51","guid":{"rendered":"https:\/\/intas.com.au\/?p=3551"},"modified":"2020-12-10T16:29:13","modified_gmt":"2020-12-10T05:29:13","slug":"directors-insurance-guide","status":"publish","type":"post","link":"https:\/\/intas.com.au\/directors-insurance-guide\/","title":{"rendered":"Directors & Officers Insurance: What You Need To Know"},"content":{"rendered":"\n
What is Management Liability Insurance?<\/h3>\n\n\n\n
Management Liability insurance covers the business against the mismanagement \u2013 the risks and exposures of running the company \u2013 for losses incurred by third parties.<\/p>\n\n\n\n
While this type of insurance is used for private company directors, for public company directors, it is called Director & Officers insurance. Generally speaking, the cover is the same and protect both the financial security of the company and the personal wealth of its directors and management.<\/p>\n\n\n\n
This insurance is often confused with professional indemnity insurance which covers the business against the professional advice it provides when a financial loss is suffered by a third party. The key difference in Management Liability insurance cover is mismanagement.<\/p>\n\n\n\n
What does management liability insurance cover?<\/h3>\n\n\n\n
Management liability insurance covers against –<\/p>\n\n\n\n
Employment issues<\/strong> \u2013 OH&S, unfair dismissal, or sexual harassment,<\/li>
Business issues<\/strong> \u2013 defamation, statutory breach of duty, acts of misconduct, allegations, legislative breaches, including statutory fines and penalties.<\/li>
Criminal issues<\/strong> – losses arising from dishonest acts such as theft and fraud by employees, including theft of stock.<\/li><\/ol>\n\n\n\n
There are many insurance companies and brokers that can provide Management Liability insurance. International Accounting Solutions would be happy to recommend one \u2013 contact us via the form on this page.<\/p>\n\n\n\n
Do I need it? Why is Directors & Officers insurance important?<\/h3>\n\n\n\n
This insurance is important as it protects the business and its directors – executive directors, non-executive directors, the company secretary, executive officers and employees – who are responsible for the management of a business.<\/p>\n\n\n\n
Threats to the business can come from the more expected business associations such as your employees, customers or suppliers but can also come from competitors, liquidators, administrators, government regulators or investors.<\/p>\n\n\n\n